In a market where value is scarce, NYSE:OC offers a refreshing opportunity with its solid fundamentals.

Last update: Dec 12, 2023

Consider OWENS CORNING (NYSE:OC) as a top value stock, identified by our stock screening tool. NYSE:OC shines in terms of profitability, solvency, and liquidity, all while remaining very reasonably priced. Let's dive deeper into the analysis.

Valuation Assessment of NYSE:OC

ChartMill employs its own Valuation Rating system for all stocks. This score, ranging from 0 to 10, is determined by evaluating different valuation factors, including price to earnings and free cash flow, both in absolute terms and relative to the market and industry. NYSE:OC has earned a 8 for valuation:

OC is valuated reasonably with a Price/Earnings ratio of 10.55.
Compared to the rest of the industry, the Price/Earnings ratio of OC indicates a rather cheap valuation: OC is cheaper than 88.64% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 24.79. OC is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 10.18, which indicates a very decent valuation of OC.
Based on the Price/Forward Earnings ratio, OC is valued cheaply inside the industry as 93.18% of the companies are valued more expensively.
OC is valuated cheaply when we compare the Price/Forward Earnings ratio to 20.41, which is the current average of the S&P500 Index.
Based on the Enterprise Value to EBITDA ratio, OC is valued cheaper than 93.18% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of OC indicates a somewhat cheap valuation: OC is cheaper than 63.64% of the companies listed in the same industry.
OC's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
OC has a very decent profitability rating, which may justify a higher PE ratio.

Profitability Assessment of NYSE:OC

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. NYSE:OC scores a 7 out of 10:

OC's Return On Assets of 10.74% is fine compared to the rest of the industry. OC outperforms 70.45% of its industry peers.
Looking at the Return On Equity, with a value of 23.29%, OC is in the better half of the industry, outperforming 68.18% of the companies in the same industry.
OC has a Return On Invested Capital of 13.22%. This is in the better half of the industry: OC outperforms 63.64% of its industry peers.
The 3 year average ROIC (12.19%) for OC is below the current ROIC(13.22%), indicating increased profibility in the last year.
The Profit Margin of OC (12.31%) is better than 79.55% of its industry peers.
OC's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 16.58%, OC is in the better half of the industry, outperforming 77.27% of the companies in the same industry.
OC's Operating Margin has improved in the last couple of years.
OC's Gross Margin has improved in the last couple of years.

Health Analysis for NYSE:OC

ChartMill employs its own Health Rating for stock assessment. This rating, ranging from 0 to 10, is calculated by examining various liquidity and solvency ratios. In the case of NYSE:OC, the assigned 6 reflects its health status:

An Altman-Z score of 3.46 indicates that OC is not in any danger for bankruptcy at the moment.
The Debt to FCF ratio of OC is 2.57, which is a good value as it means it would take OC, 2.57 years of fcf income to pay off all of its debts.
A Current Ratio of 2.16 indicates that OC has no problem at all paying its short term obligations.
OC has a Quick ratio of 1.49. This is in the better half of the industry: OC outperforms 61.36% of its industry peers.

Growth Analysis for NYSE:OC

ChartMill employs its own Growth Rating system for all stocks. This score, ranging from 0 to 10, is derived by evaluating different growth factors, such as EPS and revenue growth, taking into account both past performance and future projections. NYSE:OC has earned a 5 for growth:

OC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 9.57%, which is quite good.
Measured over the past years, OC shows a very strong growth in Earnings Per Share. The EPS has been growing by 23.62% on average per year.
The Revenue has been growing by 8.86% on average over the past years. This is quite good.

More Decent Value stocks can be found in our Decent Value screener.

Our latest full fundamental report of OC contains the most current fundamental analsysis.

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.